Statement on Tinkoff Bank's RAS Financial Highlights for January - September 2020
Moscow, Russia - 02 November 2020. TCS Group Holding PLC (LI: TCS, MOEX: TCSG) (the "Group"), Russia's leading provider of online financial and lifestyle services via its Tinkoff ecosystem, today announces Tinkoff Bank's unaudited RAS financial highlights for January - September 2020.
For the nine months of 2020, net income stood at RUB 25.4bn versus RUB 22.2bn in January - September 2019.
It should be noted that the RAS net income figure is not a reliable indicator of IFRS net income for the same period. There is a very low correlation between financial results under the two reporting standards as a result of significant accounting differences. Therefore, RAS figures should not be used as the basis for conclusions on forthcoming IFRS results.
The gross loan portfolio amounted to RUB 399bn representing an increase of 9% y-o-y. The net loan portfolio amounted to RUB 326bn having increased by 4% y-o-y and constituted 47% of total assets (57% at year-end 2019).
Retail customer accounts stood at RUB 441bn. Tinkoff Bank continued to retain substantial liquidity: the CBR N2 ratio stood at 95% (minimum requirement: 15%), and the CBR N3 ratio was 146% (minimum requirement: 50%). Retail customer accounts constituted 75% of total liabilities.
Total assets increased by 42% y-o-y to RUB 692bn.
As of 1 October 2020, total capital including retained profits (based on Form 123) amounted to RUB 123.9bn. The CBR N1 capital adequacy ratio was 14.02%. Core Capital Adequacy Ratio (N1.1) was 10.91% and Main Capital Adequacy Ratio (N1.2) was 13.45%.
Note on RAS results
Please note that the figures in this press release are calculated in accordance with Tinkoff Bank's internal methodology which is available at:
RAS results are not a reliable indicator of IFRS results due to significant accounting differences that make a direct read-across from RAS to IFRS results impossible. The main differences between RAS and IFRS are:
- Consolidated results under IFRS include a number of additional items and results of its subsidiaries
- Accrual of expenses under IFRS
- Timing differences in accounting for restructured loans ('instalments') and loans going through courts
- The effect from the revaluation of currency derivative instruments
- The effect of deferred income tax.
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TCS Group Holding PLC
TCS Group Holding PLC is an innovative provider of online retail financial services. It includes Tinkoff Bank, mobile virtual network operator Tinkoff Mobile, Tinkoff Insurance, management company Tinkoff Capital, Tinkoff Software DC, a network of development hubs in major Russian cities, and Tinkoff Education. The Group is currently developing Tinkoff ecosystem, which offers financial and lifestyle services.
The Group was founded in 2006 by Russian entrepreneur Oleg Tinkov and has been listed on the London Stock Exchange and on the Moscow Exchange.
The Group's key business is Tinkoff Bank, a fully online bank that serves over 11 mn customers and forms the core of the Tinkoff ecosystem.
Tinkoff Bank is the second largest player in the Russian credit card market, with a share of 13.2%. The 1H 2020 IFRS net income of TCS Group Holding PLC amounted to RUB 19.3bn. The ROE was 38.4%.
With no branches, the Group serves all its customers remotely via online channels and a cloud-based call centre. To ensure smooth delivery of the Group's products, the Group has a proprietary nationwide network of representatives.
In 2018, Global Finance named Tinkoff Bank the world's Best Consumer Digital Bank, in 2019, 2018, 2016 and 2015, the Best Consumer Digital Bank in Russia, and in 2019, the Best Consumer Digital Bank in Central and Eastern Europe. In 2017 and 2013, the Banker recognised Tinkoff Bank as the Bank of the Year in Russia. The bank's mobile app has consistently received top industry ratings and awards (in 2013, 2014, 2015, 2016 by Deloitte and in 2018 by Global Finance).